The design of provincial ancillary service markets in China under the new-round electric power industry reform

Abstract

This paper aims at developing a provincial ancillary service market framework, which helps improve the system operation and wind power integration ability. Firstly, the traditional plan-based management framework of the ancillary services in China is introduced. Then, the current pilot programs on developing market-based ancillary services management systems in China are introduced. The comparisons between China’s ancillary services management framework and that in mature electricity markets, such as PJM market, are made. Based on the experiences summarized from the mature electricity markets, the key issues of building an efficient ancillary service market are analysed. Finally, the framework of provincial ancillary service markets in China is proposed. The proposed framework illustrates how ancillary services could be procured and scheduled in a provincial electricity market.